Energy bill relief scheme extended to cover contracts from December

The government's energy bill relief scheme to support UK businesses with increasing energy prices has been extended to include contracts from December 2021.

Initially, it was announced that the relief would apply to fixed contracts agreed on or after 1 April, however in more detailed guidance this week this will now apply to existing fixed price contracts that were agreed on or after 1 December 2021.

At the time, hospitality businesses welcomed the move but warned that more support was needed and expressed concerns of a "cliff edge" when the support is due to end next spring.

"This is important news for those small firms who locked themselves into contracts just as energy prices originally rose," said Federation of Small Businesses (FSB) national chair Martin McTague.

"While this discount will only apply to a relatively small number of firms who fixed prices when wholesale prices were spiking, it would have sent the wrong message to the small business community to leave this group unprotected.

"Our eyes are now on March 2023 when the scheme is due to finish – the Government must come up with plans to avoid a cliff-edge after six months, and provide on-going support to small firms with soaring energy bills, regardless of which sectors they are in."